On Wednesday, the U.S. House of Representatives passed a bill to suspend the $31.4 trillion debt ceiling with support from both Democrats and Republicans, overcoming opposition from hardline conservatives to avoid a catastrophic default. The bill now heads to the Senate, where it faces a likely Republican filibuster.
The debt ceiling is a legal limit on the amount of money that the U.S. government can borrow to pay its bills, including funding for Social Security benefits, military salaries, and other federal programs. If the debt ceiling is not raised, the government will not be able to pay its bills in full and could default on its debt, which would have severe consequences for the U.S. economy and global financial markets.
The House bill would suspend the debt ceiling until December 2022, allowing the government to continue borrowing money to pay its bills without fear of default. It passed by a vote of 219-206, with 9 Republicans joining the Democrats in support.
House Speaker Nancy Pelosi praised the bill’s passage, saying that it was necessary to “protect the full faith and credit of the United States.” Republicans, however, accused Democrats of reckless spending and argued that the debt ceiling should not be suspended without significant spending cuts.
Senate Minority Leader Mitch McConnell said on Tuesday that Republicans would not support a suspension of the debt ceiling without “structural reforms” to address the government’s long-term spending and debt. “We’re not interested in helping them get Democratic votes to appease the left and stick our children and grandchildren with a massive sea of debt,” he said.
If the bill fails in the Senate, Democrats could try to include a debt ceiling suspension in a larger spending bill that must pass before October 1 to avoid a government shutdown. However, that move is likely to face significant opposition from Republicans and may not be able to pass before the deadline.
The U.S. government has faced several debt ceiling crises in recent years, including a 2011 standoff that led to the first-ever downgrade of the country’s credit rating. Experts warn that failure to raise the debt ceiling this time could have even more severe consequences, including higher interest rates, stock market volatility, and damage to the United States’ global standing.
